NATIONAL Express is to lose its contract to operate train services in north Essex.

The firm will be forced to give up its East Anglia rail franchise next year.

It failed to make it on to a Government shortlist to operate services in the region from next February.

Commuters said it was time for a change, accusing the operator of letting them down with a poor service.

National Express said it would be taking up the matter with the Department for Transport, to find out what went wrong with its bid to keep the contract.

It is not clear whether staff will be taken on by the new firm when National Express goes.

Derek Monnery, chairman of Essex Rail Users’ Federation, said: “I think National Express is probably feeling a bit sore about this.

“But it needs new blood. It’s time for a change and this should bring improvements to rail services.

“I think the passengers and staff are a bit demoralised.

“Things have reached a low point and I don’t think National Express can pull it back.”

Mr Monnery believed the reasons why the operator lost its franchise were complex, but said problems with its East Coast franchise had been a significant factor.

National Express was made to relinquish its East Coast operation in 2009 because of financial difficulties.

Mr Monnery said the new timetable, introduced in December, was not working well and the company’s reluctance to refurbish 17 trains it took control of at that time had not helped its case.

Issues like over-running engineering works by Network Rail and bad weather – both beyond the operator’s control – had affected its performance, he added.

A new short-term East Anglia contract – officially known as the Greater Anglia franchise – is due to start on February 5 and last for 17 months, with an option to extend it for a year.

The three companies in the running are Nederlandse Spoorwegen, the Go-Ahead Group and Stagecoach.

A National Express spokesman said: “We are very disappointed not to have been shortlisted to bid for the Greater Anglia franchise. We believe we put forward a very positive and high quality submission, building on the significant improvements delivered on National Express East Anglia.

“We are therefore seeking further clarification from the Department for Transport to explain this decision.

“In the meantime, we remain focused on delivering services for our customers, including the introduction of new trains on West Anglia and the ongoing industry-leading performance of c2c.”

The Department for Transport said the shorter franchise would allow time for recommendations about value for money in rail services, arising from the current review by Sir Roy McNulty, to be considered.

After that shorter franchise expires, the department will issue a 15-year contract.

Bob Crow, general secretary of the RMT transport union, said: “We welcome the fact National Express are off the tracks in East Anglia.

“But the merry-go-round of rail franchising takes another spin and, whoever the winners are from these latest beauty contests, it certainly won’t be the travelling public.”

National Express continues to operate c2c services on the London, Tilbury and Southend line.